2023 UNIVERSAL REGISTRATION DOCUMENT

B. Post-balance sheet events, trends and outlook

B. Post-balance sheet events, trends and outlook

1. Material post-balance sheet events

Renewal of the syndicated credit facility

On 9 January 2024, VINCI entered into an agreement with a syndicate of 23 core relationship banks to amend its revolving credit facility. The amendment agreement:

  • extends the credit facility’s maturity until 9 January 2029, and gives VINCI two options to extend it further by one year each;
  • reduces the size of the facility from €8.0 billion to €6.5 billion due to the increase in VINCI’s available cash in recent years;
  • increases the number of participating banks from 21 to 23. This confirmed credit facility, which is intended to cover the Group’s general funding requirements, is currently unused.
Extension of the airport concession contract in the Dominican Republic

VINCI Airports, which since 2016 has operated six airports in the Dominican Republic under concession via its Aerodom subsidiary, has been granted a 30-year extension to its current concession contract, which was initially due to expire in 2030.

Under the new concession contract, which covers the period from 2030 to 2060, VINCI Airports will be responsible for financing, operating, maintaining, extending and upgrading the airports concerned. VINCI Airports will also build and operate a new passenger terminal at Las Américas airport near Santo Domingo, and will continue to implement its environmental action plan, including the development of solar power facilities, a wastewater treatment plant and waste recycling centres.

Aerodom will make a total payment of $775 million ($300 million on 2 January 2024 and $475 million when the financial close takes place in the first half of 2024) to the Dominican government, and it will also invest $830 million in airport infrastructure during the concession period, including $250 million for the new terminal at Las Américas airport.

Levy on long-distance transport infrastructure operators in France

Article 100 of France’s Finance Law for 2024 (Law 2023-1322 of 29 December 2023), introduces a levy on long-distance transport infrastructure operators in France starting in 2024.

Its impact for the Group, based on the 2023 revenue of the entities concerned (ASF, Cofiroute, Escota and Aéroports de Lyon), is estimated to represent an additional expense of €272 million (including €268 million for the motorway concession subsidiaries).

The VINCI subsidiaries concerned will use all available means to oppose Article 100 of this law, since it is contrary to the spirit and the letter of the concession contracts signed with the French state as grantor, which include tax neutrality clauses.

2. Trend information

2.1 Outcome in 2023

When publishing its quarterly results in October 2023, VINCI clarified its full-year trends:

In view of its solid performance in the first nine months of 2023, the Group confirms that for the full year, it expects:

  • a further increase – although more limited than in 2022 – in revenue and operating income;
  • net income slightly higher than the level achieved in 2022, despite a substantial increase in financial costs.

Free cash flow – taking into account the increase in investments in both airports and renewable energy – should be at least €4.5 billion in 2023.

2023 forecasts for each business line, updated for the Concessions, are as follows:

  • VINCI Autoroutes now expects traffic levels in full-year 2023 to be slightly higher than those seen in 2022.
  • VINCI Airports is forecasting a further recovery in passenger numbers, which should be close in the fourth quarter of 2023 to the levels seen in the fourth quarter of 2019. This traffic recovery will come along with a further improvement in the business line’s operating earnings year on year.
  • VINCI Energies will see further business growth, driven by continuing positive trends in its markets and the integration of recent acquisitions, and intends to further solidify its excellent operating margin.
  • Cobra IS, supported by its robust order book, is expecting revenue growth of at least 10% due to the ramp-up of the large EPC projects won recently and strong performance in flow business.
  • New projects will be added to the renewable energy production portfolio, taking total capacity in operation or under construction to at least 2 GW by the end of the year.
  • VINCI Construction will see further business growth while remaining selective in taking on new business, thereby continuing to improve its operating margin.